1400 ET - Software companies are expected to face a slowdown in activity from enterprises as they seek to preserve cash in the current environment, BofA Securities analysts say in a research note. While tariffs pose little direct impact to the software industry, with the exception of eCommerce companies such as Shopify, the cyclical nature of software project approvals represents a threat, the analysts say. BofA lowers its 2Q and 2025 estimates 1% and 4% across the software industry. With the software group off 18% from February 18, the analysts say they are also lowering price targets on stocks. "While positive tariff-related news flow could drive a step-change recovery of multiples (as seen following the 90-day tariff pause headline), we believe it's prudent to adjust price objectives based on the environment we are in today." (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
April 15, 2025 14:00 ET (18:00 GMT)
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